The "other income" section of Pigeon Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 equity in Hole Co. earnings, and P25,000 gain on sale of available-for-sale securities. Assuming the sale of the securities increased the current portion of income tax expense by P10,000, determine the amount of Pigeon's reclassification adjustment to other comprehensive income.

The "other income" section of Pigeon Company's Statement of Comprehensive Income contains P5,000 in interest income, P15,000 equity in Hole Co. earnings, and P25,000 gain on sale of available-for-sale securities. Assuming the sale of the securities increased the current portion of income tax expense by P10,000, determine the amount of Pigeon's reclassification adjustment to other comprehensive income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

An entity reported the following information during the first year of operations: Pretax financial income 9,000,000 Nontaxable interest received 1,000,000 Long-term loss accrual in excess of deductible amount 1,500,000 Tax depreciation in excess of financial depreciation 2,000,000 Income tax rate 30% What is the total tax expense?
For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its taxable income was P1,500,000. the difference is due to the following:Interest income as savings deposit, 700,000Premium expense on keyman life insurance, (200,000)Total 500,000The income tax rate is 35%. In its 2006 income statement, what amount should Grim report as current provision for income tax expense?a. 525,000 b. 700,000 c. 595,000 d. 770,000
dev
Flip's Pizzeria Inc. has the following financial items for the current year: Adjusted Taxable Income before Interest $43,400,000 Business Interest Income $550,000 Interest Expense $16,100,000 How much interest expense can Flip deduct in the current year? A В C D E 1 2 Interest Expense Deduction = 4 7 8 9. 10 3. 6.
Amazon Ltd reported the following tax attributes for the taxation year ending December 31, 2020. The balance of both refundable dividend tax on hand account at December 31,2019 was nil. The company received portfolio dividend of $18,750. The company paid $112,500 in taxable dividend, all non-eligible, to its shareholders. The refundable portion of part I tax was correctly calculated to be $1,533. Calculated the dividend refund for the taxation year 2020.
An entity reported the following information during the first year of operations: Pretax financial income 9,000,000 Nontaxable interest received 1,000,000 Long-term loss accrual in excess of deductible amount 1,500,000 Tax depreciation in excess of financial depreciation 2,000,000 Income tax rate 30% What is the deferred tax liability at year-end?
How much is the restated balance of AMSTERDAM's retained earnings account at January 1, 2021?
The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. (attached image) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?
Please answer in good accounting form. Thankyou
DEF Co. reported taxable income of P8M in its income tax return for the 1st year of operations. The entity revealed the following temporary differences between financial income and taxable income for the year:Tax depreciation in excess of book depreciation, P800,000Accrual for product liability claim in excess of actual claim, P1,200,000Reported installment sales income in excess of taxable installment sales income, P2,600,000Income tax rate, 30%Compute for the deferred tax expense for the 1st year
BTS Corporation reports the following information: • Correction of overstatement of depreciation expense in prior years, net of tax- P215,000 • Dividends declared- P160,000 • Net income- P500,000 • Retained earnings, 1/1/21, as reported- P1,000,000 BTS should report retained earnings, December 31, 2021 at?
Sunland Company reported the following information for 2025: Sales revenue Cost of goods sold Operating expenses Unrealized holding gain on available-for-sale debt securities Cash dividends received on the securities O $490300. O $404600. $480700. $2420000 O $85700. 1754000 271000 85700 For 2025, Sunland would report comprehensive income (ignoring tax effects) of 9600